FIPB to take up Tesco's multi-brand retail proposal on Dec 30

Written by PTI | New Delhi | Updated: Dec 24 2013, 03:18am hrs
TescoThe application of Tesco Overseas Investments is listed on the FIPB meeting agenda of December 30 (Reuters)
The Foreign Investment Promotion Board will on December 30 take up UK-based Tesco Plc's proposal to enter the Indian multi-brand retail segment with an initial investment of USD 110 million.

If the application is approved, Tesco will pick up a 50 per cent stake in Trent Hypermarket Ltd, a wholly owned subsidiary of Trent Ltd, a Tata group company.

Tesco is the first global retailer to apply for multi-brand retailing after the government allowed 51 per cent FDI in the segment in September last year. The application of Tesco Overseas Investments is listed on the FIPB meeting agenda of December 30.

Trent Hypermarket runs 16 outlets in the southern and western regions with support from Tesco.

The UK retailer plans to sell 14 categories of products, official sources said. The items to be sold at its stores include tea, coffee, vegetables, fruits, meat, fish, dairy products, wine, liquor, textiles, footwear, furniture, electronics and jewellery.

The FIPB, headed by Economic Affairs Secretary Arvind Mayaram, is also likely to take a call on Vodafone's Rs 10,141 crore FDI proposal to buy out minority shareholders in its Indian arm.

The decision on the Vodafone application was deferred at the previous meeting as comments from the Ministry of Home Affairs were awaited.

CGP India Investments Ltd, an indirect Mauritian subsidiary of Vodafone International Holdings BV, had sought FIPB approval to buy the stake held by minority shareholders in Vodafone India Ltd.

The UK-based telecom major holds a 64.38 per cent stake in the Indian unit.

Other proposals on the FIPB agenda include those of HDFC Bank, SingTel Global (India), Johnson & Johnson and Xeo Infosoft.